New Stimulus Check “Debit Cards” Show America’s Banks Are In Big Trouble (Source forbes.com)
A new wave of stimulus payments is hitting people’s mailboxes. But they’re NOT coming in the form of checks. Instead, millions of Americans are now receiving pre-paid debit cards. The Treasury Department is sending out around 4 million debit cards to people who haven’t provided their banking information to the IRS. The Treasury’s calling them Economic Impact Payment (EIP) cards. But look at the top right corner. These are Visa (V) cards. This is the end of the bank. And another reason to bet on the true financial disruptors, like Visa and Mastercard. It hardly matters what bank you use. At the end of the day, your card likely needs Visa or Mastercard’s payment network to function. It’s not a coincidence every one of these new EIP cards have Visa’s logo plastered on them! Over 80 million stores accept Visa or Mastercard. With one of their cards in your wallet, you can buy stuff anywhere in the world. Visa and Mastercard have effectively created a universally accepted money—a “global currency.” $13 trillion flowed through their networks last year. They make money by taking a small cut of each transaction, like a tollbooth on a highway. Both Visa and Mastercard are minting record profits, and their stocks have handed investors tremendous gains.